Question $2(25$ marks$)$ ABC Limited's shares are selling for $$25$ per share. Because of rapid expansion in recent years, the board of directors of the firm decides to raise funds for expansion. The firm announces a rights offering with a subscription price of $$20$ per share. One new share can be purchased for every four shares held. a What is the value of one right? $(5$ marks$)$ Assume that all rights have been subscribed, what will the ex$-$rights price be$?(2$ marks$)$ c Suppose that the price of a right is higher than the value estimated in $($a$).$ Explain how you would exploit the difference, assuming you hold $10$ shares at $$25$ and the market price of one right is $$1\mathrm{.}20.(8$ marks$)$ d As a stockholder, are you concerned about the dilution? Briefly explain. $(4$ marks$)$ e Discuss the advantages of a rights offering over a common stock offering. $(6$ marks$)$